Taghmen Energy Acquires Stake in Licenses in Belize and Guatemala

Taghmen Energy has acquired a stake in two licenses, the first in Belize (Block 19) and the second in Guatemala (license 7-98). Under the agreed arrangements, Taghmen will operate the licenses and will acquire a 50% interest in both blocks. Based on the leads identified, un-risked potential gross reserves on the two blocks are estimated by the Company to be approximately 130 million barrels. Under the terms of the agreement, Taghmen will fund a seismic program over the licenses, which together with the minimal reimbursement of certain past costs, is expected to cost approximately US $7.5 million.

The third license (6-98) over which an option exists to acquire a 50% interest lies in eastern Guatemala. At present this license is suspended, pending discussions with the Government.

The original owner and the remaining 50% participant in the licenses is Flamingo Energy Investment (BVI) Ltd., which holds or controls the two license holding companies, Compania Petrolera del Atlantico, SA and USCapital Energy Belize Ltd.